Shiba Inu Cryptocurrency: Eyeing Potential Price Upsurge Amid Market Fluctuations
Shiba Inu (SHIB), a prominent meme cryptocurrency, is currently experiencing a short-term price adjustment. However, technical indicators hint at the possibility of the token reaching new price peaks soon.
Technical Indicators Signal Potential Growth for SHIB
Notably, the TD Sequential indicator has recently emitted a buy signal on SHIB’s daily chart. This signal suggests that the token may soon target new resistance levels, as highlighted by esteemed cryptocurrency analyst Ali Martinez in a social media post on December 24.
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The TD Sequential is a tool used to detect trend exhaustion and potential reversals. It comprises a series of candlestick patterns, which in Shiba Inu’s case, indicate that the current downtrend might be coming to an end.
Potential Price Trajectory for Shiba Inu
Currently trading around $0.00002307, Shiba Inu’s recent buy signal suggests a possible surge towards the 0.618 Fibonacci retracement level of approximately $0.000026. Should buying pressure increase, SHIB could aim for the next resistance level at $0.000029, aligning with the 0.236 Fibonacci level.
Furthermore, trading expert Javon Marks has highlighted a bullish sentiment, suggesting that SHIB’s technical configuration could enable it to reach the $0.000081 mark. This would represent a significant 3.33-fold increase, translating to an impressive 234% rise from its current value.
Formation of a Bullish Reversal Pattern
Shiba Inu has developed a descending wedge pattern, indicative of a bullish reversal. This pattern often precedes an upward breakout, signaling potential future gains. Following a period of consolidation, SHIB has started forming higher lows, demonstrating strong resilience and investor confidence.
SHIB’s Recent Performance and Market Sentiment
The recent bullish outlook offers potential relief to Shiba Inu investors, especially as the meme coin has faced numerous trading sessions of losses, mirroring broader market trends.
Analyzing current SHIB holders’ profits and losses can provide insights into future expectations for the coin. Data from the crypto on-chain analysis platform IntoTheBlock, as of December 25, reveals that 55% of Shiba Inu holders are in profit, 8% are breaking even, and 37% are experiencing losses.
Impact of Current Holder Sentiment
Profit-taking by the majority could result in selling pressure, limiting price growth, while losses for 37% of holders may reduce selling activity, contributing to price stability. Meanwhile, investors at breakeven could introduce short-term resistance if they sell as prices rise.
Network Developments: Shibarium’s Role in SHIB’s Growth
Beyond technical analysis, Shiba Inu is poised for growth through network-specific developments. A key factor is the network’s layer-two scaling solution, Shibarium, which has achieved significant milestones.
As of December 25, Shibarium has surpassed 700 million total transactions since its launch last summer, indicating rapid protocol adoption. This milestone comes alongside several developments, including a revamped user interface for better wallet compatibility, a hard fork for faster block processing, and a refined burning mechanism to reduce token supply.
Current SHIB Market Analysis
At the time of writing, SHIB is trading at approximately $0.000022, marking a 2% decline over the last 24 hours. The meme coin has experienced a nearly 10% drop over the week.
Shiba Inu’s technical indicators suggest potential bearish sentiments in the short term, as the current price remains below its 50-day simple moving average (SMA) but above the 200-day SMA, indicating a positive long-term outlook. The relative strength index (RSI) stands at 47.31, reflecting neutral conditions, while moderate volatility (11.38%) suggests stable price fluctuations.
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